Window of opportunity may be closing despite best efforts to build poweer plant as proposed, Wolverine CEO reports

by Richard Lamb, Advance Editor

They didn?t say the project was finished, but a dark cloud hung over the room as the facts surrounding the possible fate of the Wolverine Clean Energy Venture came to light Friday. Not saying the project in Rogers City is finished, but painting a less-than optimistic picture for about 60 community leaders gathered for a lunch meeting Friday, Wolverine president and CEO Eric Baker said without an air quality permit, there will be no power plant in Rogers City.

Prospects of gaining that permit, through court action after the state denied the permit in May, seem dim, Baker said. ?We can?t move forward until we get a permit. We are at a dead stop until we get a permit. So what we are hoping for, through the court process, is that we get the permit back on track and then we re-evaluate what the next steps are to move forward at that point,? Baker said Friday.

THE LAWSUIT asking the court to reverse the action of the Michigan Department of Natural Resources and Environment (DNRE) now rests in the hands of Missaukee Circuit Court Judge William Fagerman. Wolverine is asking the court to reverse the action taken when the DNRE denied the permit and send it back to the state for reconsideration based on science and the law. Secondly, it asks the judge to declare Gov. Jennifer Granholm?s executive order of 2009 unlawful, when she asked for input from the Michigan Public Service Commission (MPSC).

?Until the court case plays out, there is not a lot we can do,? said Wolverine vice president Craig Borr. If the judge rules in favor of Wolverine, there is likely to be an appeal from a national environmental group. Borr warned the community leaders to beware of propaganda circulated by those opposed to the project, especially regarding possible rate increases. Part of Wolverine?s offer to the state when submitting its paperwork on the air quality permit, was a ?hard cap? on prices.

?We offered it as a permit amendment and they turned it down. If they were really concerned about the cost, why would they turn it down?? Borr said. TIME IS NOW working against the project. With prospects fading, Wolverine leaders seemed ready to share what could be the next step, should plans for the plant, as proposed, be scrapped. ?The window of opportunity is closing. The further we delay getting the permit, as that window closes, the less likely the opportunity is to move forward. We have done everything we know how to do, but we measure our success on what we deliver. And we haven?t delivered here. It is very frustrating,? Baker said.

That open window included favorable interest rates, trade unions hungry for work, and not too many big projects on the nationwide table. ?That window is finite and we don?t know how long it will be open,? Baker said. Another item in the mix is new federal carbon dioxide regulations on the horizon, part of a ?never-ending process? to keep up with new rules. EVEN THOUGH Baker said the draft permit, approved by the state Sept. 8, 2008 was essentially correct, it took nearly 1,000 days for the DNRE to stamp ?denied? on the air permit application. The current administration?s delay in rendering a decision worked into the plans of those opposed to the project. Stringing the project along is ?part of the strategy used on how to block a power plant,? the stated goal of many national environmental groups.

?Without the air permit, our prospects are doubtful. It is not fun to deliver t

hat message to you here today, but it is an honest message,? he said. ?When we first came to the area some five or years ago, we wanted you to be the first to know what we had planned. We didn?t even tell our employees before we told you (through an article in the Advance May, 2006). Our intentions have been well communicated the same way.? Even given recent developments, Wolverine continues to be optimistic about the future of the project and northern Michigan. The company remains focused on providing reliable and affordable power for its member-owners. The proposed 600-megawatt (MW) power plant fits that goal.

Baker said the Rogers Township location, located in the Calcite Quarry, is still a ?world-class site.? He called plans for the plant ?the best engineering and design possible? focused on higher emission standards than required. The flexibility of the design incorporates possibilities for future upgrades, far above current standards required by law. ?Does that mean we are done in Rogers City. No. The problem isn?t going away. Michigan still needs new power. Rogers City is still a world class site,? Baker said. Wolverine sales are not going down, he said, as 2010 may prove to be a record year. ?Our needs are still there,? but the company continues to pursue other ways to supply power. (A complete version of this story appears in the Oct. 21 edition of the Advance)